What is a sole proprietorship? Advantages, disadvantages and when to start

What is a sole proprietorship? A sole proprietorship (eenmanszaak) is not a company but simply you as a person carrying out an economic activity. You and your business are legally the same person. This makes it the fastest, cheapest and simplest way to start as a self-employed person in Belgium. Suitable for professions with limited liability risk: plumbers, electricians, hairdressers, graphic designers, consultants. Important: always take out good professional liability insurance to cover what you do.

Short answer

A sole proprietorship (eenmanszaak) is the simplest way to become self-employed in Belgium. No notary, no minimum capital, start the same day. The downside: you are personally liable with your entire estate.

Advantages

Fastest to set up

Register at a business counter (ondernemingsloket) and you can start the same day

Cheapest option

No notary, no publication in the Official Gazette

No minimum capital

Start without any investment

Simple bookkeeping

Single-entry bookkeeping if you stay below the thresholds

All profits are yours

No distribution rules or approvals needed

Ideal for a side activity

A BV as a side activity is possible too, but rarely worth it due to the fixed costs (notary, accountant). As a sole proprietor you start a side activity with minimal costs and lower social contributions

Disadvantages

Unlimited liability

Creditors can go after your entire personal estate. Professional liability insurance is essential.

Progressive taxation

Personal income tax from 25% to 50% as your profit increases, plus social contributions (approx. 20%)

No partners or investors

You cannot let anyone participate in your business

No continuity

The business ceases if you stop, fall ill or pass away

When to choose?

  • You are starting as a freelancer or consultant and want to keep things simple
  • You are beginning a side activity alongside your employment
  • Your profit is below EUR 100,000 per year
  • You want to test whether your idea works before setting up a company
  • Your activity carries little risk (no debts, no employees)

When not?

  • Your profit is heading towards EUR 100,000 per year
  • Your activity carries risks (debts, liability)
  • You want to hire staff or grow
  • You want to protect your personal assets

3. Not sure?

Most entrepreneurs hesitate between a few legal forms. Here are the most common comparisons.

Sole proprietorship vs. BV

The classic dilemma. Start as a sole proprietor if your revenue is still low and you want to keep things simple. Switch to a BV once your profit approaches EUR 100,000 or you hire staff. Remember: you cover day-to-day professional risk with insurance, not with a legal form.

Sole proprietorship: main occupation vs. side activity

As a side activity, you pay lower social contributions and keep the security of your employment. Ideal for testing. As a main occupation, you pay higher minimum contributions but enjoy full social rights as a self-employed person.

How many sole proprietorships are there in Belgium?

View the exact figures, top cities, popular sectors and age distribution.

View the statistics →

4. Frequently asked questions

What is a sole proprietorship?

A sole proprietorship (eenmanszaak) is a business form where you as a person are the business. There is no separation between your personal and business assets. You start by registering at a business counter (ondernemingsloket).

How much does it cost to start a sole proprietorship?

Registration at a business counter costs approximately EUR 90-100. No notary required. VAT activation is free.

When should I switch from a sole proprietorship to a BV?

Rule of thumb: around EUR 100,000 profit per year, a BV becomes fiscally advantageous. Below EUR 75,000 it usually does not pay off. Also if you want to limit risks or hire staff, a BV is better.

Can I start a sole proprietorship as a side activity?

Yes, this is one of the most popular ways to get started. You keep your job as an employee and pay lower social contributions as long as your main occupation is salaried employment.

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